211–220 of 690 posts
This seems like it’s going to harm more people than help. Encouraging fiscal irresponsibility under the guise of improving your credit score. All it’s really going to do is give lenders another metric to deny you a loan, either because of delinquent accounts or too many accounts opened and closed.
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> children … especially can’t Worry about your own kids, teach them the right values, and use others’ imperfect knowledge to the advantage of your family.
Yeah who cares about society?
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Only the bourgeoisie can be trusted to handle credit responsibly. The proletariat is too illiterate and short-term-focused to be trusted with it.
If you really believe the only responsible use of credit is to buy productive assets then this is a tautology. As soon as anyone uses credit buy productive assets they cease to be proletarian and become part of the capitalist class.
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Vast majority of new car sales will not let the new owner make more money and were financed with debt. If all of those buyers bought used for cash, nobody would be able to afford used cars for cash. It really is only businesses that can convert debt into income, most consumers do not want to. There is nothing I can spend on to get a higher hourly rate.
How can you factor in the aspect that a cool car might impress someone who might get you a better job? Or it allows you to "look the part" and "fake it till you make it"? People sometimes rent cars and watches and suits to appear higher class when talking to potential investors or other business partners. Having a better house might allow you to invite more people over for parties or dinner, which can have downstream…
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They also didn’t destroy people’s credit when they got upside down and had to return the $5k couch or $15k car they were talked into buying on their fixed income, but that’s usually “other people” problems.
Being "talked into" is one hell of an excuse not to take accountability for your own purchases.
It probably makes sense to do so. Not that I condone the FICO hustle. But small loans can add up quickly and delinquencies need to be measured for financial market stability.
Yes it's a bit odd that the article poses the question if this will help or harm credit seekers. The point of the system is to provide transparency. What does need to happen however is that these inputs are properly weighted such that those using FICO can make appropriate decisions. Similar to credit cards, numerous BNPL-purchases do not necessarily indicate that the debtor is in financial trouble. They could merely…
FICO scoring is far from "transparent".
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Mortgages with low interest rates are also one of the (main) reasons houses are so "expensive" in the first place. The cheaper money (credit) is, the "higher" the prices will go. It's not so much that houses became expensive, it's more that money to buy a house (specifically mortgages) became relatively cheaper. Low interest rates did that.
House size, build "quality" (the details in the house), resource scarcity, and zoning policy are the drivers of cost. Cheap credit and lifetime loans allow the system to continue.
Game out the economic implications of that sort of regulatory behavior across the entire real estate and housing sectors and suddenly a lot of stuff that makes no sense makes a lot more sense.
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True, and this is why you shouldn’t just hand your kid an iPad and peace out. I’m all for technology and video games for my kids, but I’m vigilant to keep my kids’ eyes away from ads. As a result, my kids aren’t foaming at the mouth for the latest and greatest toys and games which was my experience as a child.
Thing is, keeping children out of Instagram, Facebook, or whatever new social media is hyping currently will probably make them kind of weirdos in their bubble, e.g. in school. At least this would be my fear (don't have children). And good luck trying to use any of these ad-infested privacy-invading platforms while trying to avoid ads.
They didn't before? It's a credit like any other type, increasing debt burden like any credit. Seems like corru... ahem, lobbying of course. :)
Yep you're onto something here but surely they operate within legal reasonable frameworks of the government surely.
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True, and this is why you shouldn’t just hand your kid an iPad and peace out. I’m all for technology and video games for my kids, but I’m vigilant to keep my kids’ eyes away from ads. As a result, my kids aren’t foaming at the mouth for the latest and greatest toys and games which was my experience as a child.
Thing is, keeping children out of Instagram, Facebook, or whatever new social media is hyping currently will probably make them kind of weirdos in their bubble, e.g. in school. At least this would be my fear (don't have children). And good luck trying to use any of these ad-infested privacy-invading platforms while trying to avoid ads.
My kids won’t be on social media until they’re not kids anymore. If none of us take a stand, nothing ever changes.